Everything else held constant, a decrease in government spending ________ aggregate ________

Suppose real output falls in the aggregate economy. Which is correct?

A) A real business cycle theorist thinks that there was a negative shock to total factor productivity, and that the government should therefore increase expenditures. B) A New Keynesian thinks that the output gap has fallen, and central bank's interest rate target should rise. C) A real business cycle theorist thinks that total factor productivity has risen, and that the government should do nothing . D) none of the above.

A market is not a pure monopoly if firms

a. can enter it freely. b. sell unique products. c. can exit the market freely. d. require government permission to sell in the market.